Research Reports
Prospect of Demand and Supply of Energy in the Agricultural Sector and Strategies for Introducing Clean Energy Farming System

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AuthorKim, Yeanjung
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Publication Date2010.10.01
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Original
Energy consumption in the agriculture sector increases annually and, depending on increasing oil price, the competitiveness of agriculture is threatened. Accordingly, it is time to positively search for the development and utilization of clean energy to solve energy and environmental problems.
The agriculture sector continues to use 1.8% of national energy consumption, but the cost of energy in agricultural production is very high. In particular, energy inputs such as expansion of horticulture facilities and mechanization processes are increasing, raising the necessity of and policy interest in the efficient management of energy in the agriculture sector.
In the agricultural sector, regarding consumption by energy sources, oil occupies 73%, electricity 19%, and natural gas 0.3%; however, the consumption of new renewal energy in the agriculture sector is almost nothing, and the distribution of new renewal energy is still at an insufficient level.
To prepare an efficient management plan for agricultural energy, an input-output analysis was conducted to understand the energy input structure of the agricultural sector. It was found that energy consumption has largely increased in the farming sector. The farming sector comprises mainly vegetables and flowering plants, with annual consumption of vegetables increasing by 9% and that of flowering plants more than 11%.
Among all currently usable energy sources, farmers prefer mainly oil and electricity, and preference for new renewable energy sources such as terrestrial heat, solar heat, and wind was low. The facilities with big energy reduction that will be preferred by greenhouse growers in the future are multilayered heat-keeping curtains and vertical heat terrestrial heat pumps. Every farmer wants to upgrade to a highly efficiency facility, but the problem is cost.
At present, the major applicable energy sources in the agriculture sector among new renewable energy sources are terrestrial heat and biomass energy. Heat pump systems and wood-pellet stoves also use terrestrial heat. Use of new renewable energy sources for heating has direct effects such as reduction of fuel expenses and increased productivity and indirect effects such as reduction of CO2 discharge.
To achieve wide application of clean energy sources such as terrestrial energy or wood-pellet biomass in the agriculture sector, the basis expansion of these energies should first be implemented. In particular, support for facility installation of the new renewable energy source should be planned, and an incentive system to encourage its use should be introduced. In addition, consistent technology development and collaboration with professional construction companies so as to reduce supply prices of clean energy facilities applicable to the agriculture sector are required.
As a countermeasure to global warming, advanced countries such as the United States, Japan, and Europe put their efforts into reducing fossil fuel consumption and raising energy efficiency as well as into distribution of clean energy.
With a national goal of reducing greenhouse gases in the U.S., the Waxman-Markey bill established a goal of curtailing them 17% by 2020 and 80% by 2050 compared with the 2005 level.
In the case of Japan, the Basic Bill for Global Warming Prevention was passed in March 2010, and greenhouse gases are planned to be reduced 25% by 2020 compared with 1990. Europe is in the process of implementing the plan outlined in “Renewable Energy Target for Europe 2020” to increase consumption of renewable energy by 2020 while simultaneously reducing 20% of greenhouse gas generation.
Based on these policies, American agriculture is trying to distribute clean energy by using wind force, solar energy, and bio-ethanol production. Japan is planning to maintain biomass towns in 300 regions by 2010. Europe is putting its efforts into producing bioenergy such as wood pellets supplied from forests and biogas using livestock manure.
The use of clean energy by these advanced countries is expected to bring about not only a reduction in greenhouse gases but also increased employment opportunities in agricultural regions and reduced energy costs, energy independence, security reinforcement, and consumer protection. As reviewed in the cases of advanced countries, our country should also encourage the use of renewable energy and raise energy efficiency in preparation for a plan to reduce the consumption of fossil energy; for this, the development and infrastructure implementation of clean energy usable in our country and overseas countries should be sponsored and supported at the level of the nation.
Researchers: Yean-Jung Kim, Ki-Hwan Park, Chang-Yong Kang, Yun-Hyung Kim, Eun-Mee Jeong, Woong-Yeon Lee, Hyun-Tae Park, Min-Ji Park
E-mail address: yjkim@krei.re.kr
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